The Pros And Cons Of Supply Chain Management

Reorders are placed at the time of review (T), and the safety stock that must be reordered is:

Mellat-Parast and Spillan (2014) defines supply chain management as the method of handling material and information moves from the beginning, through the organization, and to the end-user. This is a very important factor of organizational strategy.

Vertical integration allows executives and management to control distribution costs that often involve multiple mark-up and re-selling stages. A single organization that manages their own distribution process will enjoy the ability to optimize resources and minimize waste. Vertical integration provides more direct control over the value chain. When retailers develop or acquire a manufacturer, they gain power over production aspects and distribution processes. When manufacturers engage in retailing, they can control how they present and market their products to

Supply chain is starting point before transforming product to customer. Supply Chain Management (SCM) as defined by Tom McGuffog is "Maximizing added value and reducing total cost across the entire trading process through focusing on speed and certainty of response to the market." Supply Chain Management has allowed company to rethink their entire operation and restructure it so that they can focus on its core competencies and outsource processes that are not within the core competencies of the company.

"The ability to learn faster than competitors may be the only true sustainable competitive advantage." – Arie P. De Geus

Q: What is Supply Chain Management? Also explain the role in operations of the business.

The Supply-Chain Council defines supply chain management as “[m]anaging supply and demand, sourcing raw materials and parts, manufacturing and assembly, warehousing and inventory tracking, order entry and order management, distribution across all channels, and delivery to the customer” (Wisner, Leong & Tan 2005).

According to Hugos (2013), The term Supply chain management arose in the late 1980s, and prior to that time, many business used terms such as operation management and logistics, and supply Chain management can be defined as :” A supply chain consist of all stages involved, directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and supplier, but also transporters, warehouses, retailers and customer themselves”

Supply chain management (SCM) is the maximization of customer value and effective management of supply chain activities to ensure a sustainable competitive advantage. Supply chain firms strive to develop and manage their supply chains as efficiently as possible. Supply chain activities include everything from product development, procurement, production and logistics to all the information systems necessary to coordinate these activities.

Supply chain management (SCM) is the supervision of materials, information, and finances as they move in a process from supplier to manufacturer to retailer to the cessation consumer. There are three crucial flows of the supply chain: The product flow, the information flow and the finances flow. SCM involves coordinating and integrating these flows both inside and between

According to Routroy and Shankar (2014), supply chain systems are becoming increasingly lengthy and complex. This is an indication that the modern global marketplace has become dynamic in nature. Supply chains are very complex, with a lot of parallel physical and information flows taking place so that products are delivered in the correct quantities, to the right place in a cost-effective manner. As a result of the forgoing situation, it has been suggested that supply chains may not be the most accurate term to define the interactions but supply networks may be a rather more precise term to describe the situation. However, the focus on achieving more efficient supply chains has rendered them more prone to disruptions (Jüttner, 2005).

4241). This well-organized formation enables information sharing and joint decision-making among the members in the network, which in turn optimizes the supply chain streamlining processes in Almost 21. For example, cost minimization, better information and product flow arrangement, power expansion is achieved by inviting small firms to be a member in the network, thus strengthening intimacy with customers and fostering company reputation. Therefore, these features increase the efficiency and effectiveness of the company’s supply network.

The supply chain management (SCM) literature offers many variations on the same theme when defining a supply chain. The most common definition, as

According to one author Supply Chain Management is a set of approaches that helps to effectively integrate suppliers, manufacturers, distributors and retailers. SCM ensures availability of the right product at the right time in the right place at minimum cost and taking into account the service requirements of customers (Mandavi, Iraj; Page 26).

Today, most organizations are facing increasing challenges and opportunities to remain competitive, the organizations must adapt and improve their performance like reducing costs, rapid development of products and offering high quality products and services. With the continued evolution of supply chain management, customers are showing increased awareness about working effectively with suppliers and in achieving required performance and business results (Srivoravilai et.al, 2011).